Tesla shares reached a new all-time high of $493.27 in Tuesday’s after-hours session, sending the company’s market capitalization to just below $1.7 trillion.
After having reached its previous all time high in December 2024, the stock faced a tumultuous first half of the year while refreshing its best selling vehicle — the Model Y — and preparing to start providing the first autonomous rides in late June.
Over the first 98 days of 2025, Tesla shares crashed by nearly 50% to $214. However, the following months marked a turnaround for the company’s stock performance.
The stock has soared more than 20% over the past month, driven by significant improvements to Full Self-Driving (Supervised) software and progress toward removing safety operators from robotaxi testing in Austin — a target Chief Executive Officer Elon Musk set in October.
Tesla‘s stock has become increasingly tied to the company’s autonomy and AI initiatives rather than its core automotive business.
Wall Street Raises Targets
Morgan Stanley said it expects Tesla to increase its robotaxi fleet to 1,000 vehicles next year as the company expands the service across several US cities.
Analyst Adam Jonas said in a research note that “by the end of 2035, we expect Tesla to have 1 million Robotaxis on the road across multiple cities” after deploying 1,000 next year from “a handful” currently in operation.
Mizuho raised its price target on Tesla to $530 from $475 on Tuesday while maintaining its Outperform rating.
The notes followed Wedbush analyst Daniel Ives reiterating his $600 price target on Monday, hours after Musk confirmed the company is testing robotaxi rides without a safety operator inside the vehicle.
California Autopilot Ruling
Separately, Tesla could face a 30-day suspension from selling vehicles in California due to misleading marketing concerning its Autopilot system, Bloomberg reported Tuesday.
Tesla responded to the report on X, stating that the decision did not reflect customer sentiment.
“This was a ‘consumer protection’ order about the use of the term ‘Autopilot’ in a case where not one single customer came forward to say there’s a problem,” the company wrote, adding that “sales in California will continue uninterrupted.”
Goldman Sachs analyst Mark Delaney said in a research note obtained by PriceTarget that the firm does not expect Tesla’s business to be disrupted.
The company is planned to report its fourth quarter vehicle deliveries and energy storage figures on January 2, 2026 — with earnings results expected for later in the month.
